[QODLink]
Central & South Asia
Kabul Bank fraud claims probed
Afghanistan's biggest privately owned bank is being investigated following allegations of mismanagement.
Last Modified: 30 Nov 2010 09:33 GMT
Customers waited outside the bank in September amid fears that it would collapse [EPA]

Afghanistan's Kabul Bank is being investigated following allegations that its former chairman misused funds, the Afghan finance minister has told Reuters news agency.

"Mismanagement is being investigated," Omar Zakhilwal said on Tuesday on the sidelines of an Afghanistan investment conference in Dubai.

Hundreds of Afghans queued outside the bank in September, trying to withdraw their savings after reports that millions of dollars had been lent and poured into high-risk real estate investments in Dubai.

Afghan authorities then seized operations at the bank, which is Afghanistan's biggest privately owned, following allegations that Sherkhan Farnood, the chairman, misappropriated funds.

Farnood has been ordered to hand over more than $150m in luxury villas and condominiums  that he allegedly bought with the bank's money for various Afghan elites, including Mahmood Karzai, the brother of the Afghan president.

Zakhilwal said the lender was now under the control of the central bank but was functioning normally.

"Kabul Bank has stabilised and is operating normally," he said.

Source:
Agencies
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
Your chance to be an investigative journalist in Al Jazeera’s new interactive game.
An innovative rehabilitation programme offers Danish fighters in Syria an escape route and help without prosecution.
Street tension between radical Muslims and Holland's hard right rises, as Islamic State anxiety grows.
Take an immersive look at the challenges facing the war-torn country as US troops begin their withdrawal.
Featured
Private citizens take initiative to help 'irregular' migrants, accusing governments of excessive focus on security.
Indonesia's cassava plantations are being killed by mealybugs, and thousands of wasps will be released to stop them.
Violence in Ain al-Arab has prompted many Kurdish Syrians to flee to Turkey, but others are returning to battle ISIL.
Unelected representatives quietly iron out logistics of massive TPP and TTIP deals among US, Europe, and Asia-Pacific.
Led by students concerned for their future with 'nothing to lose', it remains to be seen who will blink first.